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May Barton is the new manager of the materials storeroom for Tudor Manufacturing. May has been asked to estimate future monthly purchase costs for
May Barton is the new manager of the materials storeroom for Tudor Manufacturing. May has been asked to estimate future monthly purchase costs for part #696, used in two of Tudor's products. May has purchase cost and quantity data for the past 9 months as follows: (Click the icon to view the data for the past 9 months.) Estimated monthly purchases for this part based on expected demand of the two products for the rest of the year are as follows: (Click the icon to view the expected demand for the rest of the year.) Read the requirements. Requirement 1. The computer in May's office is down, and May has been asked to immediately provide an equation to estimate the future purchase cost for part #696. May grabs a calculator and uses the high-low method to estimate a cost equation. What equation does she get? +( ) Data table Month Cost of Purchase Quantity Purchased January 12,687 2,670 parts February 12,110 2,820 March 17,606 4,153 April 15,825 3,712 May 13,125 2,923 June 13,814 3,365 July 15,300 3,600 August 10,094 2,275 September 14,900 3,512 Data table Purchase Quantity Month October Expected 3,370 parts November 3,730 December 3,050 Print Done
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